Download or read book On the Fallacy of Llsv Revisited - Further Evidence About Shareholder Protection in Austria and the United Kingdom written by Robert Schmidbauer and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: La Porta, Lopez-de-Silanes, Shleifer and Vishny's Law and Finance, in particular its shareholder protection measures, have been heavily criticised from nearly every different standpoint, for example methodology, the choice of variables, the simplicity of the judgment or the disregard of board structures. Braendle was the first to move the critique forward by combining the wide range of objections to the index, whereas previous critiques had focused on separate objections only. Broadening the scope to encompass the range of objections he reconsidered the level of shareholder protection for Germany and the United States. The result was astonishing, after LLSVs score was reassessed and adjusted for differences between Civil and Common law in more detail. While the original score for Germany and the US was 0:5 and therefore suggested a very high level of shareholder protection in the latter, the reassessed score amounted to 4:4. This reconsideration as opposed to a single-tracked criticism challenged LLSVs thesis - which is seen as being so important throughout the legal, economic and political world - on a more profound level. This work accepts Braendle's invitation, introduces Law and Finance, summarizes and classifies the different objections made so far and finally reconsiders LLSVs shareholder protection measures for two further countries: Austria and the United Kingdom. The outcome is very similar to Braendle's work. The paper ends with three main conclusions: First and most important: LLSVs shareholder protection index is incorrect. The second conclusion drawn is that the differences between Common and Civil Law countries in shareholder protection are not as severe as suggested by Law and Finance. And third, research based on LLSVs shareholder protection index has to be reconsidered, because it rests upon inappropriate pre-requisites.